Kverneland Group: Clear leadership – ONE direction

Due to numerous acquisitions over the years , Kverneland Group had become an international organization consisting of many companies, different cultures and different management systems. The need to create common processes and build a common identity became paramount. This is partly the reason for the decision to introduce a new 'People Performance Management' process within the organisation.
	Ingvald Løyning, CEO Kverneland Group

Goal alignment from top to bottom
‘To ensure that the group as a whole is moving in the desired strategic direction, it is critical to break down the overall objectives to clear individual goals,’ says Ingvald Løyning, CEO. ‘Clearly communicated goals that are aligned from top to bottom remove any doubt about what is expected,’ he continues. The Appraisal Dialogue that takes place in the first quarter is used as an arena to break down the objectives at an individual level. The Appraisal Dialogue takes place after the preparation of business plans and budgets, which continues the same way as before.

Personal development and living the values - also important
‘The way we do business and how the individual works in his role is also an important aspect for us. Therefore, we have included our values in the Appraisal Dialogue so that the manager and employee can discuss and evaluate adherence in a tangible way,’ explains Løyning. ‘The role you have, the agreed business goals and the behavior that is practiced is a very good basis for talking about personal development and somewhat ‘solidifies’ the development goals of the individual.’

Committed to a new IT supported process
"We soon understood that a new 'People Performance Management' process that also will support the ongoing follow-up could not be realized without the support of an IT system", says Løyning. “After an evaluation, we selected to cooperate with CatalystOne, who could assist us in defining the new process as well as deliver the system that supports it”.

HR-director Jan Erik Bergsrønning has led the project. The definition and commitment of the new process took place 4th Quarter, 2008 and the roll-out of the system that supports the Appraisal Dialogue took place 1st Quarter 2009. During the project 25 line managers participated in different workshops, facilitated by HR management and CatalystOne consultants. The broad involvement resulted in a solution consistent with the line management needs and created ownership among those who are going to live by the process.

Managers take the lead
‘The ambition for 2009 is to ensure that the leaders of the group have the knowledge and confidence to easily practice the new 'People Performance Management' process", continues Løyning. "The leaders are important role models, and they should be well prepared when we from 2010 will involve several groups of our employees in the process.’

Positive experience
‘We have put great emphasis on communicating the purpose of the initiative. After the Appraisal Dialogue was completed the feedback was very positive,’ says Løyning. ‘We found that preparations have improved and that awareness of the topic has increased significantly. We are committed to creating good goals and have come a long way in creating common understanding and clear leadership,’ concludes CEO Ingvald Løyning. Ingvald Løyning, CEO Kverneland Group

Kverneland Group has a large portfolio of respected trademarks of high quality and offer a unique and complete product range for professional farmers and contractors within grass, soil preparation, and reduced soil preparation, fertilizer spreading, seeding and spraying. Parent Kverneland ASA, listed on the Oslo Stock Exchange, had a turnover of 594 million Euro in 2008. The company has subsidiaries in 22 countries, exports to more than 60 countries and employs approximately 2,600 people.